Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tulsa Company is a car brake repair and replacement company operating in the after - sales market. Tulsa's purchasing manager uses two suppliers ( Stridulo

Tulsa Company is a car brake repair and replacement company operating in the after-sales market. Tulsa's purchasing manager uses two suppliers (Stridulo and Fallimento) for the source of its passenger car brakes. Data relating to brake discs (Discs) and brake pads (Pads) are given below.
I. Activity costs
Activity
Adverse buying*696,000
Supplier returns**82,500
*Extra cost of purchasing from local car dealer because of insufficient delivery of supplier.
**Brakes returned because they were not ordered or because they were defective.
II. Supplier Data
Stridulo Brakes Fallimento Brakes
Discs Pads Discs Pads
Unit purchase price $80 $135 $77 $132
Units purchased 15,00015,00030,00030,000
Insufficient units 7507503,6003,600
Returned units 3753751,5001,500
Required:
1. Calculate the activity rates for assigning costs to suppliers.
Adverse buying rate $fill in the blank 1
per adverse purchase
Supplier return rate $fill in the blank 2
per return
2. Calculate the total unit purchasing cost for each component for each supplier. If required, round your answers to the nearest cent.
Total unit cost
Stridulo Brakes Fallimento Brakes
Discs $fill in the blank 3
$fill in the blank 4
Pads $fill in the blank 5
$fill in the blank 6

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions